Extended limitation under Central Excise law fails where classification was disclosed, approved, and no intent to evade duty was shown.

Where a classification list had already been filed and approved, and a show cause notice had earlier been issued to dispute the classification, the Department could not establish misdeclaration with intent to evade duty. The assessee had classified the product under Chapters 84 and 85 on its understanding of the goods, and that prior disclosure defeated invocation of the extended limitation period under Section 11A of the Central Excise Act. The duty demand was therefore barred by limitation and unsustainable against the assessee.

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Issues: Whether the extended period of limitation under Section 11A of the Central Excise Act was invokable on the facts, where the classification list had been filed and approved earlier.

Analysis: The classification list filed by the assessee classifying the product under Chapters 84 and 85 had been duly approved, and a show cause notice had already been issued to alter the classification. In these circumstances, the Department could not successfully allege misdeclaration with intent to evade payment of duty. The assessee had classified the product according to its understanding, and the demand was therefore beyond the permissible time limit.

Conclusion: The extended period of limitation was not invokable and the demand was time-barred, in favour of the assessee.

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